Cheetahs Continue GC2011 Web

Cheetahs Continue
Lessons on How to Survive and Thrive from Missouris Fastest Growing Businesses
Dr. David Schmidt BRIDG | University of Missouri Alan Spell MERIC | Missouri Dept. of Economic Development
Cheetahs Continue 2011GovernorsConferenceonEconomicDevelopment

Missouri Economic Research and Information Center
Business Research and Development Group
The Importance of Being Cheetahs

What are Cheetahs?
Not Gazelles! Original Cheetahs are Firms that at Least Cheetahs Doubled Jobs over 5 years (2001-2006)
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Cheetahs that Continued Job Growth Despite the Recession (2006 2009)
26% of O i i l Cheetahs Added Jobs f Original Ch t h Add d J b
Cheetah growth exceeded 250 percent when statewide job growth for the period managed just over 2 percent. dj t t
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Missouri Economic Research and Information Center Business Research and Development Group
The Importance of Being Cheetahs

Cheetahs Around the State:
Although a Select Group, Continuing Cheetahs are found almost equally across the State
Continuing Cheetah by Region
0.8 - 1.0% of Firms are Continuing Cheetahs Most are Small Businesses: 81% had Less than 50 Employees
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Study Description
Surveyed of Continuing Cheetahs:
593 Firms had Telephone Interview General Business Survey of Nearly 1,000 1 000 Firms to Compare Some Questions
Depth Interviews:
20 Cheetahs had Detailed Interviews to Gain More Insights. Example firms include:
Battery Suppliers Metal Fabrication Mfg. Chemical Mfg. Lab Se ces ab Services Engineering Consulting Accounting Firm
1,630 Continuing Cheetahs in Missouri
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Importance of Cheetahs Continue

ResearchQuestions: FastgrowthfirmsCEOs(Cheetahs)perspectives onseveralkeyissues ProvideinsightforEconomicDevelopmentpolicy andactivity and activity Identify characteristics of high jobgrowth firms Identifycharacteristicsofhighjob growthfirms (Cheetahs)
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Importance of Cheetahs Continue

WhatCheetahsbelievearetheirReasonsforSuccess A. Whenthebusinesswasformed B. OngoingorContinuingSuccess How Cheetahs feel about the usiness Climate in Missouri HowCheetahsfeelabouttheBusinessClimateinMissouri A. Whatkindsofongoinginvestmentsaretheymaking andwhattheybelievetheirneedsare WhatCheetahsthinkaboutcommunityinvolvementand networkingintheirHomeRange GovernmentroleandPolicyImplications
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Reasons for Success
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Reasons for Success: At Formation

Wh t made you believe that th was a viable b li th t there i bl What d opportunity in the marketplace?
Recognized demand Experience Purchased existing business existingbusiness Entrepreneurial Lackofcompetition Research FamilyBusiness Other TOTAL RESPONDENTS
43% 21% 12% 7% 5% 5% 4% 3% 100% 74%
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Market Orientation
Market orientation is a business philosophy and g g organizational culture built around an organizationwide effort to:
gatherintelligenceaboutcurrentandprospective g g p p customersneeds, g y sharethatintelligenceinternally,and respondmeaningfullytoit ( (Kohli andJaworski 1990) )
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ReasonsforSuccess
Market Orientation MarketOrientation
RecognizedDemand TheirownExperience(inthemarket) LackofCompetition Lack of Competition Research(regardingthemarket)
43% 21% 5% 5% 74%
ContinuedSuccess:Keyquestion: Continued Success: Key question:

Whatarethekeyfactors(orfactor)thathasenabledyourbusiness y ( ) y tocontinuetogrowthroughouttherecession?
StrategicPlanning+MarketOrientation
CustomerService/Quality MarketDemand StrategicPlanning Strategic Planning
28% 23% 27% 78%
Business Climate
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How do Cheetah CEOs feel about the Business Climate in Missouri?

Investing to grow: (access to credit, workforce issues, investments they ve made or want to make, and outlook on theyve make performance)
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Do Cheetahs plan to Hire more People in the Next Year?

35% of Cheetahs expected to increase employment levels as compared to 24% of Business Survey respondents Cheetahs felt that only about half of the applicants were adequate
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What Cheetahs Said

What Type of Investment would likely Expand Your Growth Potential? Technology and Talent
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Business Climate: How do Cheetahs Invest for Growth?

Ongoing Innovation
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What Expert Help do Cheetahs Need?
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WhyareCheetahsmoreOptimistic?
GrowthRevenueOptimism Growth Revenue Optimism
Home Range
How important is local community involvement and networking to business?
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How much do Cheetahs use the Internet for Online Sales?
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How much of Cheetahs sales come f O t f St t ? from Out-of-State?
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Do Cheetahs get involved in th i C iti ? Yes their Communities? Y

Do you serve in a voluntary capacity for any boards, committees, or organizations within your community?
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Where do Cheetahs want to Locate?

Commercial Centers or Anywhere
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Policy Issues
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Policy Issues for Cheetahs

Over past 5 years, any State or Local Policy that: p Hindered Growth? No Helped Growth? No
Of Y Responses: Yes R Regulations 38% Taxes 21%
Of Yes Responses: Tax Credits 27% Reg./Tax Reform 23%
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What Cheetahs Said

What do You Pay too much for in Missouri? Health Insurance, Taxes, and Nothing
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What Cheetahs Said

If You could receive Free Training, What would you Train Your Staff on? Specific Job Tasks are Number One but Soft Skills Next
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What are Some Lessons?

For Talent Development: Targeted OJT Training #1, Professional Fundamentals #2 Business Management requested by Owners (Growing Pains?) i O For Policies Targeting Growth: g g Technology Investments: Company (Software/Equip.) and Broadband Talent Development: See Above (Interesting how this is connected) For Finding the Next Cheetah in Your Community: Look at Skill Professionals in Existing Big Business and on Boards Introduce Smaller, Established Firms to Avail. Resources and Training
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Thank You
Dr. David Schmidt BRIDG | University of Missouri Alan Spell MERIC | Missouri Dept. of Economic Development
Key Partners and Contributors:

Economic Development Administration Employment Emplo ment and Training Administration Missouri Small Business & Technology Centers UM Center for Advanced Social Research Tom Reichart, Planner, MERIC Dr. Marty Romitti, Former Director, MERIC Dr. David Schmidt, Director, BRIDG Alan Spell, Research Mgr., MERIC

Cheetahs Continue GC2011 Web

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Cheetahs Continue

Cheetahs Continue 2011GovernorsConferenceonEconomicDevelopment

Business Research and Development Group

The Importance of Being Cheetahs

26% of O i i l Cheetahs Added Jobs f Original Ch t h Add d J b

The Importance of Being Cheetahs

1,630 Continuing Cheetahs in Missouri

Importance of Cheetahs Continue

Importance of Cheetahs Continue

Reasons for Success

Reasons for Success: At Formation

RecognizedDemand TheirownExperience(inthemarket) LackofCompetition Lack of Competition Research(regardingthemarket)

43% 21% 5% 5% 74%

ContinuedSuccess:Keyquestion: Continued Success: Key question:

CustomerService/Quality MarketDemand StrategicPlanning Strategic Planning

28% 23% 27% 78%

How do Cheetah CEOs feel about the Business Climate in Missouri?

Do Cheetahs plan to Hire more People in the Next Year?

What Cheetahs Said

Business Climate: How do Cheetahs Invest for Growth?

What Expert Help do Cheetahs Need?

GrowthRevenueOptimism Growth Revenue Optimism

How much do Cheetahs use the Internet for Online Sales?

How much of Cheetahs sales come f O t f St t ? from Out-of-State?

Do Cheetahs get involved in th i C iti ? Yes their Communities? Y

Where do Cheetahs want to Locate?

Policy Issues for Cheetahs

Of Y Responses: Yes R Regulations 38% Taxes 21%

Of Yes Responses: Tax Credits 27% Reg./Tax Reform 23%

What Cheetahs Said

What Cheetahs Said

What are Some Lessons?

Key Partners and Contributors:

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